031: EITC Due Diligence Requirements - published 10/30/2019

The Earned Income Tax Credit (EITC) is a refundable tax credit that has a significant impact on the US Treasury’s revenue. EITC is a source of a disproportionately large number of errors in tax returns, claiming the EITC.

In this practical webinar, you will learn….

New regulations affecting any practitioner who prepares a tax return that claims the EITC, best practices and interviewing tips to achieve compliance. Understand EITC due diligence requirements, EITC most common errors, the use of due diligence to avoid them, and consequences for non-compliant tax preparers, employers of preparers, and your clients. Includes case studies and examples.

Upon course completion, you will be able to:

(actionable learning objectives)

· Identify the EITC eligibility rules that apply to all taxpayers, including taxpayers who have a qualifying child and taxpayers without a qualifying child

· List the most common EITC errors and their potential problem areas

· Identify the additional questions tax preparers need to ask if taxpayer-provided information appears incorrect, inconsistent, or incomplete

· List the due diligence requirements a tax return preparer must meet when preparing a tax return claiming the EITC

· Identify the records a tax return preparer is required to keep to support a client's claim for the EITC

· Identify the penalties that may be imposed on a tax return preparer for failing to comply with due diligence requirements when preparing a client's tax return claiming the EITC

· Cite the sanctions that may be imposed on an employer whose employee fails to comply with EITC due diligence requirements

• Identify the additional requirements imposed on taxpayers claiming the EITC following disallowance and the exceptions to those requirements